We all enter into contracts every day for goods and services, in shops, over the phone and increasingly over the internet and when things go wrong you may need the assistance of a lawyer.
The first thing you need to know is who did you actually make your contract with?
When buying or selling goods and services don’t be afraid to ask the person you are dealing with “who am I entering into a contract with? “
Many businesses use trading names e.g. “Smiths Plumbing”. Is Smiths Plumbing in fact John Smith trading as Smiths Plumbing? In that case your contract is with John Smith. Are John Smith and his brother in partnership? If so your contract is with Smiths Plumbing (a Firm) and both partners are liable for problems even though you may have only spoken to one of them. Is Smiths Plumbing a limited company? If so before you hand over any of your money you may want to discover how long that company has been trading and whether or not it warrants you giving them any money.
Individuals and partnerships have unlimited liability. This means that if something goes wrong you can make a claim for damages to be put back into the position you were in had the contract been performed properly. If successful you can enforce the debt against the assets owned by the individual or all of the partners that form the partnership, if there are any.
Limited companies and limited liability partnerships have exactly that, limited liability, therefore whilst you may deal with a director, who may also be the owner of the company, you can’t claim against their own personal assets. You can only claim against the assets of the company, of which there may be very little or none.
A contract is only a set of promises. Would you accept a promise from someone you didn’t know? When larger sums are involved such as building work, large purchases and expensive services it is vital you find out, before you hand over any money, and if the person you are contracting with warrants your trust.
Please contact Tim Flower for further information or if you would like to discuss any contract dispute, concern or query.